25 July 2018

PSG Angles and Perspectives: Q2 2018

The quarterly publication of PSG Asset Management which contains regular communications from our fund managers and about our funds.

In this edition, we take a closer look at the concept of positive asymmetry: healthy upside and limited downside. We consider which parts of local and global markets currently offer the potential for positive asymmetry (with a focus on Japanese financials) and set out how our process helps us to identify these opportunities.

Introduction

We view local and global opportunities equally. We’ve been investing directly offshore since 2006. As an integrated team with one investment process, we evaluate local and global opportunities without distinction. We do this from the bottom up, assessing each security based on its merit and regardless of the country or currency in which it is listed. ... Read more

Finding positive asymmetry in uncertain times

Risk and return go hand in hand. The future is inherently unpredictable. This uncertainty – and the fear that goes with it – creates a risk premium: higher potential returns to compensate investors for taking on higher risk (the reason that equities tend to outperform over the long term). As risk and return are inherently linked, it is important to understand the risk/return trade-off to invest successfully. ... Read more

Global investing: our process puts the odds
in your favour

From blue skies to dark clouds in the Land of the Rising Sun. For the better part of the 20th century, it was bright in the Land of the Rising Sun. Japan had seen multiple decades of largely uninterrupted economic expansion between World War II and the end of the Cold War – aptly dubbed the ‘economic miracle’. ... Read more

Opportunities in Japanese financials

A disciplined and repeatable process provides favourable odds of success Investing successfully over long periods is tough and there are masses of incredibly smart people combing the globe for bargains. To think that anyone has a leading edge in such a competitive space may well be misguided. We believe that a certain degree of humility is required. ... Read more

Our Flexible funds aim to deliver real (after-inflation) capital growth at acceptable levels of risk. The main objective of our Flexible funds is to deliver equity-like returns at lower levels of risk. They make use of three core building blocks to do so: local shares, global stocks and cash. ... Read more

Portfolio Holdings as at 30 June 2018

Click here to view the portfolio holdings of the funds as at 30 June 2018